2011/7/1 ●๋•ιмяαη αℓι●๋• <candle.in.winds@gmail.com>
to me there can be two options.
1st. Just ignore the 3rd statement and draw a time line for three years as per requirement.
OR
2nd. At year 1 as mentioned outflow will be 10,000 and then discount the inflows of year 1 2 and 3 at 10%.
But the thing is there is no need to discount the inflows as in time line we will show that this will happen at year1 year2 nd year3.
To me 3rd statement is just to confuse us. Let others to comment on this.==============================================================MBA 4th (Finance),Imran Ali,===============================
On Thu, Jun 30, 2011 at 4:54 PM, Fizza Dastgir <mc090405569@vu.edu.pk> wrote:DEAR ALLQuestion No: 42 ( Marks: 5 )
Draw a three year time line which illustrates the following situation:
i. An outflow of Rs. 10,000 occurs at time 0
ii. Inflows of Rs. 5,000 occur at the end of year 1, 2 and 3.
iii. The interest rate during the three year is 10%.
can anyone tell me , is part iii. a cash outflow or inflow--
FIZZA DASTGIR BHATTI
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MC090405569MBA - ISLAMABAD
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FIZZA DASTGIR BHATTI
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MC090405569
MBA - ISLAMABAD
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